Wrecked Brand New Car - Options?

[Zigner]

Thanks very much for the advice and information.....

The insurance company indicated that they use a "forumla" to determine dimished value, which bothers me....Whether the car had $3K in damage, or $30K in damage, I believe the value is equally diminished....A buyer doesn't care, and in most cases, won't know how much damage was done, so there is a psychological component here...A wrecked and repaired vehicle is a wrecked and repaired vehicle, plain and simple...

Any advice on the best way to arrive at an accurate diminished value?

I, honestly, don't believe in the concept of "diminished value"...
If the car is repaired to factory specs, then it's fixed

 

[RBC]

It's impossible to repair a vehicle to factory specs, unless your speaking of a nuts and bolts restoration of an older vehicle....Unless the entire vehicle is stripped completely, there's no way the factory finish can be duplicated by painting/blending a panel....

In my case, they'll be "cutting out" a rear panel and welding a new panel in its place, the seam of which will be filled with Bondo...This, in my opinion, is not restoring a vehicle to its factory specs...

Not that alone, but the areas where paint has been blended, along with the clearcoat, will in time reveal itself....

If the car were a year old, I could understand, but 6 weeks old and 1, 800 miles? There's no way it can be restored, as the factory primer coating and rustproofing has been compromised....

But again, I thank you for the very informative data!!

 

[RBC]

By the way, if two identical cars were sitting next to each other, one 100% original, and one that had been wrecked and repaired, which would you buy? Furthermore, would you pay the same price for both vehicles?

 

[Zigner]

By the way, if two identical cars were sitting next to each other, one 100% original, and one that had been wrecked and repaired, which would you buy? Furthermore, would you pay the same price for both vehicles?

The difference between the two is diminished value - and that's what you are trying to get from the other guy

You are NOT going to be getting a new car out of this.

 

[RBC]

Ahh, but you avoided my question......

Indeed, although I believe there should be a law that requires a new vehicle be allowed if it's this new, I'm trying to get as much as I can so my out-of-pocket is limited when I trade it in...If I wanted a used, wrecked car, I would have bought one to begin with, and saved myself a ton of money....

 

[VeronicaLodge]

and by the way, the car was not worth what you paid for it the second you drove it off the lot and that is without it getting wrecked.

 

[Zigner]

By the way, if two identical cars were sitting next to each other, one 100% original, and one that had been wrecked and repaired, which would you buy? Furthermore, would you pay the same price for both vehicles?

If it were repaired to factory specs, sure

 

[ecmst12]

MOST of the value that your car has lost between the day you bought it and now is NOT because of the accident. MOST of the loss in value happened, as mentioned, the moment you drove it off the lot and it became a "pre-owned" car. A 6 week old car is NOT worth the same as a new, never-owned car. So there is no way in heck that you are owed anywhere near $30k for a brand new car, because that is not what you had immediately prior to the wreck.

To determine DV accurately, one would have to look at sales figures for used car sales when the vehicle does and does not have a prior accident.

 

[RBC]

MOST of the value that your car has lost between the day you bought it and now is NOT because of the accident. MOST of the loss in value happened, as mentioned, the moment you drove it off the lot and it became a "pre-owned" car.

I agree, but it is no longer in its original condition, and regardless of the repairs, it will never be in its original condition....As time goes on, it will lose value faster, and may even be difficult to sell, so how is that future loss of value compensated? Regardless, you have to admit that you're not ending up with the same vehicle as when you drove it off the lost, despite the immediate depreciation....People buy new cars for a reason, and pay a premium to do so...I've now been stripped of that luxury, as I have a wrecked, used car with years of payments still due....

 

[Zigner]

I agree, but it is no longer in its original condition, and regardless of the repairs, it will never be in its original condition....As time goes on, it will lose value faster, and may even be difficult to sell, so how is that future loss of value compensated? Regardless, you have to admit that you're not ending up with the same vehicle as when you drove it off the lost, despite the immediate depreciation....People buy new cars for a reason, and pay a premium to do so...I've now been stripped of that luxury, as I have a wrecked, used car with years of payments still due....

That, as they say, is life.

 

[Silverplum]

That, as they say, is life.

Excellent words of wisdom.

 

[ecmst12]

There is no evidence that your car will lose value any faster then before the accident. On the contrary, it will take a hit now, then it should lose value at roughly the same rate as any other vehicle.